Platform Barriers to Entry and the Limits of Data Portability

Total Page:16

File Type:pdf, Size:1020Kb

Platform Barriers to Entry and the Limits of Data Portability Michigan Technology Law Review Article 3 2021 Taking It With You: Platform Barriers to Entry and the Limits of Data Portability Gabriel Nicholas New York University School of Law Follow this and additional works at: https://repository.law.umich.edu/mtlr Part of the Antitrust and Trade Regulation Commons, Consumer Protection Law Commons, Internet Law Commons, and the Science and Technology Law Commons Recommended Citation Gabriel Nicholas, Taking It With You: Platform Barriers to Entry and the Limits of Data Portability, 27 MICH. TECH. L. REV. 263 (2021). Available at: https://repository.law.umich.edu/mtlr/vol27/iss2/3 This Article is brought to you for free and open access by the Journals at University of Michigan Law School Scholarship Repository. It has been accepted for inclusion in Michigan Technology Law Review by an authorized editor of University of Michigan Law School Scholarship Repository. For more information, please contact [email protected]. TAKING IT WITH YOU: PLATFORM BARRIERS TO ENTRY AND THE LIMITS OF DATA PORTABILITY Gabriel Nicholas* Abstract Policymakers are faced with a vexing problem: how to increase competition in a tech sector dominated by a few giants. One answer proposed and adopted by regulators in the United States and abroad is to require large platforms to allow consumers to move their data from one platform to another, an approach known as data portability. Facebook, Google, Apple, and other major tech companies have enthusiastically supported data portability through their own technical and political initiatives. Today, data portability has taken hold as one of the go-to solutions to address the tech industry’s competition concerns. This Article argues that despite the regulatory and industry alliance around data portability, today’s public and private data portability efforts are unlikely to meaningfully improve competition. This is because current portability efforts focus solely on mitigating switching costs, ignoring other barriers to entry that may preclude new platforms from entering the market. The technical implementations of data portability encouraged by existing regulation—namely one-off exports and API interoperability—address switching costs but not the barriers of network effects, unique data access, and economies of scale. This Article proposes a new approach to better alleviate these other barriers called collective portability, which would allow groups of users to coordinate to transfer data they share to a new platform, all at once. Although not a panacea, collective portability would provide a meaningful alternative to existing approaches while avoiding both the privacy/competitive utility trade off of one-off exports and the hard-to- regulate power dynamics of APIs. * Gabriel Nicholas is a Joint Research Fellow at New York University School of Law Information Law Institute and the New York University Center for Cybersecurity, and a Fel- low at the Engelberg Center on Innovation Law & Policy. Thanks to Katherine Strandburg, Aaron Shapiro, Mark Verstraete, Salome Viljoen, Randy Milch, Carrie Brown, and Lucas Daniel Cuatrecasas for their sage guidance. Thank you also to the Yale Law School Infor- mation Society Project conference on Big Tech and Antitrust and the NYU School of Law Privacy Research Group for helping me refine these ideas. Finally, special thanks to Michael Weinberg for introducing me to this topic. 263 264 Michigan Technology Law Review [Vol. 27:263 TABLE OF CONTENTS INTRODUCTION ........................................................................................... 264 I. CURRENT APPROACHES TO DATA PORTABILITY .......................... 269 II. DATA PORTABILITY AND BARRIERS TO ENTRY ............................ 272 A. Switching Costs...................................................................... 272 B. Unique Data Access............................................................... 274 C. Economies of Scale................................................................ 276 D. Network Effects...................................................................... 279 III. ADDITIONAL CONSIDERATIONS FOR API PORTABILITY................ 281 A. Hesitance to Depend on Incumbent APIs .............................. 282 B. Backslide and Undifferentiated Products .............................. 284 C. Opportunities for Creative Destruction................................. 285 IV. COLLECTIVE PORTABILITY—A NEW APPROACH ......................... 287 A. Five Questions for a Collective Data Portability Regime ..... 289 B. Hypothetical Collective Portability Regimes......................... 291 1. Spotify............................................................................. 291 2. iMessage ......................................................................... 292 3. Meme Groups ................................................................. 292 C. Collective Portability and Barriers to Entry ......................... 293 1. Switching Costs .............................................................. 293 2. Unique Data Access........................................................ 293 3. Economies of Scale......................................................... 294 4. Network Effects .............................................................. 294 D. Challenges to Collective Portability...................................... 294 1. Implementation Complexity ........................................... 295 2. Incumbent Resistance ..................................................... 295 3. Content Moderation and Filter Bubbles.......................... 296 CONCLUSION .............................................................................................. 297 INTRODUCTION On March 30, 2019, in response to fomenting anti-Facebook sentiment, Mark Zuckerberg released an op-ed titled, “Four Ideas to Regulate the In- ternet.”1 His first three ideas regarded speech, political advertisements, and privacy. The fourth addressed concerns that Facebook and its ilk had grown too large for any other platform to compete.2 Zuckerberg called for regula- 1. Mark Zuckerberg, The Internet Needs New Rules, Let’s Start in These Four Areas, WASH.POST (Mar. 30, 2019, 3:00 PM), https://www.washingtonpost.com/opinions/mark- zuckerberg-the-internet-needs-new-rules-lets-start-in-these-four-areas/2019/03/29/9e6f0504- 521a-11e9-a3f7-78b7525a8d5f_story.html. 2. See, e.g., Lina Khan, Amazon’s Antitrust Paradox, 126 YALE L.J. 710 (2017); Rob- ert Reich, Break up Facebook (and While We’re at It, Google, Apple and Amazon), GUARDIAN (Nov. 20, 2018, 3:00 AM), https://www.theguardian.com/commentisfree/2018 /nov/20/facebook-google-antitrust-laws-gilded-age; Joe Nocera, Easiest Fix for Facebook: Break It up, BLOOMBERG (Nov. 21, 2018, 11:44 AM), https://www.bloomberg.com/opinion /articles/2018-11-21/fix-facebook-by-breaking-it-up-under-antitrust-regulation. Spring 2021] Taking It With You 265 tion to guarantee the principal of data portability, noting that, “[i]f you share data with one service, you should be able to move it to another. This gives people choice and enables developers to innovate and compete.”3 Zuckerberg’s op-ed signaled a strategic shift in Facebook’s public poli- cy strategy. Instead of fighting to keep Facebook data within the walls of the platform,4 Facebook would allow for “data portability”—the ability for us- ers to move their data from one service to another. It was an instrument of self-regulation that responded directly to mounting calls for antitrust action.5 In the same way that the free movement of capital allows for competitive markets, so too would the free movement of data allow for competitive plat- forms, at least in theory.6 Facebook was not alone in adopting this ap- proach—Apple, Google, Microsoft, and Twitter all included data portability in their competition policy efforts.7 Data portability was also part of the ACCESS Act,8 introduced by Senators Warner, Hawley, and Blumenthal seven months after Zuckerberg’s op-ed, to improve competition in the tech sector.9 Although data portability laws already exist in California, the European Union, and Singapore,10 they are not primarily aimed at improving tech sec- 3. Zuckerberg, supra note 1. 4. See generally Mark Andrejevic, Privacy, Exploitation, and the Digital Enclosure, 1 AMSTERDAM L.F. 47 (2009); Kevin Bankston, How We Can ‘Free’ Our Facebook Friends, NEW AMERICA (June 28, 2018), https://www.newamerica.org/weekly/edition-211/how-we- can-free-our-facebook-friends. 5. Recent antitrust stirrings indicate that the government is interested in increasing competition among tech companies, particularly Alphabet, Amazon, Facebook, and Apple, which are all facing antitrust scrutiny by the Justice Department and other federal and state organizations. See Daisuke Wakabayashi et al., 16 Ways Facebook, Google, Apple and Ama- zon Are in Government Cross Hairs,N.Y.TIMES (Sept. 9, 2019), https://www.nytimes.com /interactive/2019/technology/tech-investigations.html. 6. See generally VICTOR MAYER-SCHÖNBERGER &THOMAS RAMGE, REINVENTING CAPITALISM IN THE AGE OF BIG DATA (2018); Peter Swire, Markets, Self-Regulation, and Government Enforcement in the Protection of Personal Information, in Privacy and Self- Regulation in the Information Age, DEP’T OF COM. (June 1997), https://papers.ssrn.com /abstract=11472. 7. The Data Transfer Project is a joint framework intended to make it easier for com- panies to let users port their data between. It is an open source project being led by Apple, Facebook, Google, Microsoft,
Recommended publications
  • CCIA Submission to Rekabet Kurumu's Inquiry Into the Digital
    CCIA Submission to Rekabet Kurumu’s Inquiry into the Digital Economy 27 April 2020 I. Introduction The Computer and Communications Industry Association,1 (“CCIA”) welcomes the opportunity to contribute to the market study into competition and the digital economy by Rekabet Kurumu (“Rekabet”), the Turkish Competition Authority. CCIA commends Rekabet for seeking a better understanding of the legal, economic and policy challenges that arise with the digitalization of the global economy and its significance in the competition analysis. CCIA looks forward to furthering the dialogue with Rekabet in this regard. The tech sector has had transformative effects on the entire economy. Tech has increased efficiency and lowered entry barriers in many markets and allowed the introduction of entirely new business models. Digital media distribution tools have created a space for individuals to broadcast their audio, photo and video content creations to the world. Online retail intermediaries like Hepsiburada and Trendyol allow small and medium sized enterprises to reach consumers and meet demand far beyond their geographic footprint, more quickly and cheaper than ever before. Social media services dramatically lower the cost for advertisers to reach their audience and avoid advertising wastage. Studies suggest that the consumer benefit of free online services is worth thousands of lira per person, per year.2 In order for innovation in the technology market to continue driving the global economy, both competition policy and sound antitrust enforcement must play a crucial role in ensuring that 1 The Computer & Communications Industry Association (CCIA) is a non-profit membership organisation that represents the interests of a wide range of companies in the Internet, technology and telecoms industries.
    [Show full text]
  • Vumber Gives You Throw-Away Phone Numbers for Dating, Work
    Tech Gadgets Mobile Enterprise GreenTech CrunchBase TechCrunch TV The Crunchies More Search What's Hot: Android Apple Facebook Google Groupon Microsoft Twitter Zynga Classics Subscribe: Got a tip? Building a startup? Tell us NOW TWEET THIS AUTHENTIC? Google Teams Up With Facebook Has Been Refining KEEN ON... Twitter And SayNow To Bring Their Troll-Slaying Comment Exposed: Apple's Terrible Sin Tweeting-By-Phone To Egypt System For Months; Finally in China » » Ready To Roll? » Err, Call Me: Vumber Gives You Throw-Away Phone Numbers For Dating, Work Jason Kincaid Tweet Most Popular 14 minutes ago View Comments Now Commented Facebook By now you’ve probably heard of Google Voice, a service that lets you take Exposed: Apple’s Terrible Sin in one phone number and configure it to ring all of your phones — work, China (TCTV) mobile, home, whatever — with plenty of settings to manage your inbound and outbound calls. But what if you wanted the opposite: a service that lets Should You Really Be A Startup you spawn a multitude of phone numbers to be used and discarded at your Entrepreneur? leisure? That’s where Vumber comes in. When The Drones Come Marching In The service has actually been around for four years, but it was originally 4chan Founder Unleashes Canvas marketed exclusively toward people on dating sites. The use case is On The World obvious: instead of handing out your real phone number to strangers, Instructure Launches To Root Vumber lets you spin up a new phone number, which you then redirect to Blackboard Out Of Universities your real phone.
    [Show full text]
  • Understanding the Challenges of Collaborative Evidence-Based
    Do you have a source for that? Understanding the Challenges of Collaborative Evidence-based Journalism Sheila O’Riordan Gaye Kiely Bill Emerson Joseph Feller Business Information Business Information Business Information Business Information Systems, University Systems, University Systems, University Systems, University College Cork, Ireland College Cork, Ireland College Cork, Ireland College Cork, Ireland [email protected] [email protected] [email protected] [email protected] ABSTRACT consumption has evolved [25]. There has been a move WikiTribune is a pilot news service, where evidence-based towards digital news with increasing user involvement as articles are co-created by professional journalists and a well as the use of social media platforms for accessing and community of volunteers using an open and collaborative discussing current affairs [14,39,43]. As such, the boundaries digital platform. The WikiTribune project is set within an are shifting between professional and amateur contributions. evolving and dynamic media landscape, operating under Traditional news organizations are adding interactive principles of openness and transparency. It combines a features as participatory journalism practices rise (see [8,42]) commercial for-profit business model with an open and the technologies that allow citizens to interact en masse collaborative mode of production with contributions from provide new avenues for engaging in democratic both paid professionals and unpaid volunteers. This deliberation [19]; the “process of reaching reasoned descriptive case study captures the first 12-months of agreement among free and equal citizens” [6:322]. WikiTribune’s operations to understand the challenges and opportunities within this hybrid model of production. We use With these changes, a number of challenges have arisen.
    [Show full text]
  • Seamless Interoperability and Data Portability in the Social Web for Facilitating an Open and Heterogeneous Online Social Network Federation
    Seamless Interoperability and Data Portability in the Social Web for Facilitating an Open and Heterogeneous Online Social Network Federation vorgelegt von Dipl.-Inform. Sebastian Jürg Göndör geb. in Duisburg von der Fakultät IV – Elektrotechnik und Informatik der Technischen Universität Berlin zur Erlangung des akademischen Grades Doktor der Ingenieurwissenschaften - Dr.-Ing. - genehmigte Dissertation Promotionsausschuss: Vorsitzender: Prof. Dr. Thomas Magedanz Gutachter: Prof. Dr. Axel Küpper Gutachter: Prof. Dr. Ulrik Schroeder Gutachter: Prof. Dr. Maurizio Marchese Tag der wissenschaftlichen Aussprache: 6. Juni 2018 Berlin 2018 iii A Bill of Rights for Users of the Social Web Authored by Joseph Smarr, Marc Canter, Robert Scoble, and Michael Arrington1 September 4, 2007 Preamble: There are already many who support the ideas laid out in this Bill of Rights, but we are actively seeking to grow the roster of those publicly backing the principles and approaches it outlines. That said, this Bill of Rights is not a document “carved in stone” (or written on paper). It is a blog post, and it is intended to spur conversation and debate, which will naturally lead to tweaks of the language. So, let’s get the dialogue going and get as many of the major stakeholders on board as we can! A Bill of Rights for Users of the Social Web We publicly assert that all users of the social web are entitled to certain fundamental rights, specifically: Ownership of their own personal information, including: • their own profile data • the list of people they are connected to • the activity stream of content they create; • Control of whether and how such personal information is shared with others; and • Freedom to grant persistent access to their personal information to trusted external sites.
    [Show full text]
  • The Impact of Data Access Regimes on Artificial Intelligence and Machine Learning
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Martens, Bertin Working Paper The impact of data access regimes on artificial intelligence and machine learning JRC Digital Economy Working Paper, No. 2018-09 Provided in Cooperation with: Joint Research Centre (JRC), European Commission Suggested Citation: Martens, Bertin (2018) : The impact of data access regimes on artificial intelligence and machine learning, JRC Digital Economy Working Paper, No. 2018-09, European Commission, Joint Research Centre (JRC), Seville This Version is available at: http://hdl.handle.net/10419/202237 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu JRC Digital Economy Working Paper 2018-09 The impact of data access regimes on artificial intelligence and machine learning Bertin Martens December 2018 This publication is a Working Paper by the Joint Research Centre, the European Commission’s in-house science service.
    [Show full text]
  • Masters Thesis Stojko.Pdf
    DEPARTMENT OF INFORMATICS TECHNICAL UNIVERSITY OF MUNICH Master’s Thesis in Information Systems An Information Model as a Basis for Information Gathering to comply with Data Portability according to GDPR Art. 20 Laura Stojko DEPARTMENT OF INFORMATICS TECHNICAL UNIVERSITY OF MUNICH Master’s Thesis in Information Systems An Information Model as a Basis for Information Gathering to comply with Data Portability according to GDPR Art. 20 Ein Informationsmodell als Basis fur¨ die Informationserhebung zur Datenportabilitat¨ nach Art. 20 DSGVO Author: Laura Stojko Supervisor: Prof. Dr. Florian Matthes Advisor: Dipl. Math.oec. Dominik Huth Date: November 15, 2018 I hereby declare that this thesis is entirely the result of my own work except where other- wise indicated. I have only used the resources given in the list of references. Munich, 15. November 2018 Laura Stojko Abstract With the announcement of the General Data Protection Regulation (GDPR) by the Euro- pean Union, data privacy laws shall be harmonized in European countries. In the digital era, personal data is of high significance for companies, especially within customer data- driven industries (e.g. social media platforms). Due to the new importance of personal data and its usage, the awareness for data privacy is increasing among people. Thus, good data privacy management is of high relevance for companies and customers. This thesis focuses on article 20 of the GDPR, which describes data portability as one essential aspect for new rights of the data subject. Data portability enables customers to receive their per- sonal data from companies and transfer it to others. Thereby, a level playing field within the market is supported.
    [Show full text]
  • Natural Language Processing 2018 Highlights
    NLP 2018 Highlights By Elvis Saravia 1 Table of Contents Introduction ............................................................................................................................................ 4 Research ................................................................................................................................................. 5 Reinforcement Learning ...................................................................................................................... 5 Sentiment Analysis and Related Topics ................................................................................................ 7 AI Ethics and Security .......................................................................................................................... 9 Clinical NLP and ML ........................................................................................................................... 12 Computer Vision ................................................................................................................................ 15 Deep Learning and Optimization ........................................................................................................ 17 Transfer Learning for NLP .................................................................................................................. 19 AI Generalization ............................................................................................................................... 20 Explainability and Interpretability
    [Show full text]
  • Data Portability and Privacy
    SEPTEMBER 2019 CHARTING A WAY FORWARD Data Portability and Privacy Erin Egan VICE PRESIDENT AND CHIEF PRIVACY OFFICER, POLICY CHARTING A WAY FORWARD 1 Table of Contents 03 I. Intro 06 II. The Challenge 09 III. Five Questions About Portability and Responsibility 09 QUESTION 1 What is “data portability”? 13 QUESTION 2 Which data should be portable? 14 QUESTION 3 Whose data should be portable? 15 QUESTION 4 How should we protect privacy while enabling portability? 20 QUESTION 5 After people’s data is transferred, who is responsible if the data is misused or otherwise improperly protected? 24 IV. What’s Next? 25 End Notes CHARTING A WAY FORWARD 2 Data Portability and Privacy 01 There’s growing agreement among policymakers around the world that data portability—the principle that you should be able to take the data you share with one service and move it to another—can help promote competition online and encourage the emergence of new services. Competition and data protection experts agree that, although there are complicated issues involved, portability helps people control their data and can make it easier for them to choose among online service providers. The benefits of data portability to people and markets are clear, which is why our CEO, Mark Zuckerberg, recently called for laws that guarantee portability.1 But to build portability tools people can trust and use effectively, we should develop clear rules about what kinds of data should be portable and who is responsible for protecting that data as it moves to different providers.2 The purpose of this paper is to advance the conversation about what those rules should be.
    [Show full text]
  • Data Transfer Project
    Data Transfer Project August 20, 2018 Federal Trade Commission 600 Pennsylvania Ave NW Washington, DC 20580 To Whom It May Concern: Thank you for the opportunity to provide comment on the Federal Trade Commission’s Hearings on Competition and Consumer Protection in the 21st Century. As you may know, Google, Microsoft, Twitter, and Facebook recently announced the Data Transfer Project (datatransferproject.dev). We are excited to share our work on this project, including the thinking ​ ​ behind it, in response to your questions. Data portability is critical for user control and competition. Not only is this project relevant to the questions you raised in your request for comment on these topics, but we also encourage the Commission to consider the importance of portability throughout your process. The mission of the Data Transfer Project is to support direct, service-to-service portability. This will ultimately enable users to transfer data between two authenticated accounts behind the scenes, without having to download the data and relocate it themselves. This is an open-source project that will make it easier for people to switch services, or try new and innovative products, by improving the ease and speed of data portability. We have attached a detailed white paper that describes the technical foundations of the project and explains how our principles guided us toward this approach. The paper also includes detailed descriptions of the security and privacy considerations that are built into the project. Please let us know if you have any additional questions. Thanks, Keith Enright Julie Brill Damien Kieran Erin M. Egan Chief Privacy Officer Corporate Vice Data Protection Officer Vice President & Chief Google LLC President & Deputy Twitter, Inc Privacy Officer General Counsel Facebook, Inc.
    [Show full text]
  • Articles & Reports
    1 Reading & Resource List on Information Literacy Articles & Reports Adegoke, Yemisi. "Like. Share. Kill.: Nigerian police say false information on Facebook is killing people." BBC News. Accessed November 21, 2018. https://www.bbc.co.uk/news/resources/idt- sh/nigeria_fake_news. See how Facebook posts are fueling ethnic violence. ALA Public Programs Office. “News: Fake News: A Library Resource Round-Up.” American Library Association. February 23, 2017. http://www.programminglibrarian.org/articles/fake-news-library-round. ALA Public Programs Office. “Post-Truth: Fake News and a New Era of Information Literacy.” American Library Association. Accessed March 2, 2017. http://www.programminglibrarian.org/learn/post-truth- fake-news-and-new-era-information-literacy. This has a 45-minute webinar by Dr. Nicole A. Cook, University of Illinois School of Information Sciences, which is intended for librarians but is an excellent introduction to fake news. Albright, Jonathan. “The Micro-Propaganda Machine.” Medium. November 4, 2018. https://medium.com/s/the-micro-propaganda-machine/. In a three-part series, Albright critically examines the role of Facebook in spreading lies and propaganda. Allen, Mike. “Machine learning can’g flag false news, new studies show.” Axios. October 15, 2019. ios.com/machine-learning-cant-flag-false-news-55aeb82e-bcbb-4d5c-bfda-1af84c77003b.html. Allsop, Jon. "After 10,000 'false or misleading claims,' are we any better at calling out Trump's lies?" Columbia Journalism Review. April 30, 2019. https://www.cjr.org/the_media_today/trump_fact- check_washington_post.php. Allsop, Jon. “Our polluted information ecosystem.” Columbia Journalism Review. December 11, 2019. https://www.cjr.org/the_media_today/cjr_disinformation_conference.php. Amazeen, Michelle A.
    [Show full text]
  • The Future of Data: Adjusting to an Opt-In Economy October 2018
    The Future of Data: Adjusting to an opt-in economy October 2018 Prepared for 2 | Oxford Economics 2018 Contents Executive summary ...................................................................... 4 The dawn of the opt-in era ............................................................ 7 Who are these people and what do they want? ............................. 10 Not all consumers are the same .................................................... 15 The rise of the data economy ........................................................ 16 How industries use data ............................................................... 18 Meet the leaders ............................................................................ 21 Life in the data age ........................................................................ 29 The path forward: Calls to action ................................................... 30 Research methodology ................................................................. 31 Contact us .................................................................................... 32 Oxford Economics 2018 | 3 Executive summary 4 | Oxford Economics 2018 In a world increasingly driven by data, We found that consumers have individual consumers suddenly have a lot contradictory views of the information of power. How they exercise this power, economy. They will share sensitive data and the ways companies respond, will be yet do not trust the companies they share a major story for years to come. with, or fully understand how much is
    [Show full text]
  • Wikipedia's Jimmy Wales Has Launched an Alternative to Facebook and Twitter 11/18/19, 8:11 PM
    Wikipedia's Jimmy Wales has launched an alternative to Facebook and Twitter 11/18/19, 8:11 PM Wikipedia's Jimmy Wales has launched an alternative to Facebook and Twitter In a nutshell: Hardly anyone would say that social media is good for you, yet billions use it in one form or another (often concurrently) every single day. These platforms make billions of dollars by addicting users and getting them to click ads. One Wikipedia co-founder wants to change that with a new social media site that is supported by the users rather than big advertisers. Wikipedia co-founder Jimmy Wales is launching a social-media website called WT: Social. The platform aims to compete with Facebook and Twitter, except instead of funding it using advertising, Wales is taking a page from the Wikipedia playbook and financing it through user donations. "The business model of social media companies, of pure advertising, is problematic," Wales told Financial Times. "It turns out the huge winner is low-quality content." WT: Social got its start as Wikitribune, a site that published original news stories with the community fact-checking and sub-editing articles. The venture never gained much traction, so Wales is moving it to the new platform with a more social networking focus. "Instead of optimizing our algorithm to addict you and keep you clicking, we will only make money if you voluntarily choose to support us – which means that our goal is not clicks but actually being meaningful to your life." The site will still post articles, but instead of giving priority to content with the most "Likes," its algorithms will list the newest stories first.
    [Show full text]